Private Student Loan Court Process: Hearings, Motions, and Trial

When you fall behind on a private student loan, the lender can sue. These lawsuits rarely make it all the way to trial. Most end earlier—at a hearing, through a motion, or in settlement. Understanding the court process helps anyone already in default on their private loans know what to expect and how to protect their defenses.

The first court dates in a private student loan lawsuit are usually short hearings, sometimes called status conferences. At this stage, the judge sets the schedule and rules on small procedural issues, like deadlines.

You must attend or have your attorney appear on your behalf. Missing a hearing can lead to default student loan judgment, which means the lender automatically wins. The court also checks if you’ve properly filed your answer to the lawsuit and whether you’ve raised any defenses to the lawsuit.

These hearings don’t decide liability or who wins. Instead, they set the path forward—trial dates, discovery deadlines, or future motions.

A motion is a request asking the judge to decide an issue before trial. Creditors often file a motion for summary judgment. They argue no facts are in dispute and ask the judge to rule in their favor. You can oppose with defenses such as lack of standing or an expired statute of limitations, both common defenses to private student loan lawsuits.

You may also see other motions.

• A motion to dismiss asks the judge to throw out the case at the start.

• A motion to compel discovery forces the lender to provide documents like the promissory note or payment history.

Winning a motion can end the case or cut down the lender’s claims. Losing means the lawsuit continues. Many cases are resolved here if the lender’s evidence is incomplete, for instance, if they can’t prove the chain of title.

Discovery is when both sides exchange evidence. For you, this means requesting the signed promissory note, payment records, and the chain of title — documents showing how the loan changed hands. If the creditor can’t provide these records, their case weakens.

You may also send written questions (interrogatories) or take depositions, where company representatives must answer under oath before a court reporter. These steps often uncover missing paperwork or errors. That can lead to dismissal or pressure the lender to settle. Discovery is also where you gain leverage to negotiate a private student loan settlement.

Only a small fraction of private student loan lawsuits reach trial. If they do, both sides present evidence, call witnesses, and argue before a judge or jury. The lender carries the burden of proof. They must show they own the loan, the balance is correct, and a valid contract exists.

Trials are rare because they’re costly and unpredictable. Lenders risk losing if their documents fail, while you face attorney fees and long delays. For that reason, most cases end earlier through settlement or a ruling on motions.

You can present defenses at trial. If you raise a statute of limitations defense, the judge will decide whether the lender waited too long to sue you. Rules of evidence apply at trial. Missing or unreliable documents can destroy the lender’s case. Know your state’s private student loan statute of limitations. This time limit often determines whether the lawsuit can proceed.

Related: What Restarts the Statute of Limitations on a Student Loan?

When a private student loan case finishes in court, there are usually three outcomes:

• Dismissal: The case ends completely, with no repayment obligation.

• Settlement: Common once lenders see weaknesses in their paperwork. You can often negotiate reduced balances or new payment terms.

• Judgment: If the lender wins, the court issues a judgment allowing collection through wage garnishment, bank levies, or property liens. You still have options, such as filing a motion to vacate a student loan judgment or checking how long judgments last in your state.